Lockheed Martin Reports First Quarter 2014 Results

BETHESDA, Md., April 22, 2014 /PRNewswire/ -- Lockheed Martin Corporation (NYSE: LMT) today reported first quarter 2014 net sales of $10.7 billion, compared to $11.1 billion in the first quarter of 2013. Net earnings in the first quarter of 2014 were $933 million, or $2.87 per diluted share, compared to $761 million, or $2.33 per diluted share, in the first quarter of 2013. Cash from operations was $2.1 billion in the first quarter of both 2014 and 2013.

First quarter 2014 net earnings included FAS/CAS pension income of $86 million, which increased earnings by $53 million, or $0.16 per diluted share. First quarter 2013 net earnings included FAS/CAS pension expense of $121 million, which reduced earnings by $75 million, or $0.23 per diluted share, and a special charge of $30 million, net of state tax benefits, related to workforce reductions which reduced earnings by $19 million, or $0.06 per diluted share. The first quarter of 2013 items were partially offset by a reduction of income tax expense related to research and development tax credits, which increased first quarter 2013 net earnings by $46 million, or $0.14 per diluted share.

"The strong earnings and operating cash delivered in the first quarter are a result of our continued focus on program performance, affordability and meeting commitments to our customers," said Chairman, President and CEO Marillyn Hewson. "Our diverse portfolio of products and services, investment in future innovations and dedicated workforce give me confidence that we'll continue to deliver outstanding results for our customers and return value for our shareholders."

Summary Financial Results

The following table presents the Corporation's summary financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP).

(in millions, except per share data)

Quarters Ended

March 30,

2014

March 31,

2013

Net sales

$

10,650

$

11,070

Business segment operating profit

$

1,429

$

1,343

Unallocated, net

FAS/CAS pension income (expense)

86

(121)

Other, net1

(83)

(103)

Total unallocated, net

3

(224)

Consolidated operating profit

$

1,432

$

1,119

Net earnings

$

933

$

761

Diluted earnings per share

$

2.87

$

2.33

Cash from operations2

$

2,100

$

2,085

1 Other, net includes severance charges of $30 million during the first quarter of 2013 associated with the elimination of

2 The Corporation received net tax refunds of approximately $200 million during the first quarter of 2014 compared to

net tax refunds of $540 million during the first quarter of 2013.

2014 Financial Outlook

The following table and other sections of this press release contain forward-looking statements, which are based on the Corporation's current expectations. Actual results may differ materially from those projected. It is the Corporation's practice not to incorporate adjustments into its financial outlook for proposed acquisitions, divestitures, ventures, changes in tax laws, and restructuring activities (including special items) until such transactions have been consummated or enacted. For additional factors that may impact the Corporation's actual results, refer to the "Forward-Looking Statements" section contained in this press release.

(in millions, except per share data)

Current Update

January 2014

Orders

No Change

$41,500 – $43,000

Net sales

No Change

$44,000 – $45,500

Business segment operating profit

$5,250 – $5,400

$5,175 – $5,325

FAS/CAS pension income

No Change

~345

Other, net

No Change

~(345)

Consolidated operating profit

$5,250 – $5,400

$5,175 – $5,325

Diluted earnings per share

$10.50 – $10.80

$10.25 – $10.55

Cash from operations

≥ $4,700

≥ $4,600

Cash Deployment Activities

The Corporation's cash deployment activities in the first quarter of 2014 and 2013 consisted of the following:

repurchasing 7.0 million shares for $1.1 billion, compared to 5.1 million shares for $461 million in the first quarter of 2013;

paying cash dividends of $444 million, compared to $371 million in the first quarter of 2013; and

making capital expenditures of $103 million, compared to $106 million in the first quarter of 2013.

Segment Results

The Corporation operates in five business segments: Aeronautics, Information Systems & Global Solutions (IS&GS), Missiles and Fire Control (MFC), Mission Systems and Training (MST), and Space Systems. The Corporation organizes its business segments based on the nature of the products and services offered.

Operating profit for the business segments includes the Corporation's share of earnings or losses from equity method investees because the operating activities of the equity method investees are closely aligned with the operations of the Corporation's business segments. United Launch Alliance (ULA), which is part of the Space Systems business segment, is the Corporation's primary equity method investee. Operating profit of the Corporation's business segments excludes the FAS/CAS pension adjustment, which represents the difference between total pension expense recorded in accordance with GAAP (FAS) and pension costs recoverable on U.S Government contracts as determined in accordance with U.S. Government Cost Accounting Standards (CAS); expense for stock-based compensation; the effects of items not considered part of management's evaluation of segment operating performance, such as charges related to significant severance actions and goodwill impairments; gains or losses from divestitures; the effects of certain legal settlements; corporate costs not allocated to the Corporation's business segments; and other miscellaneous corporate activities.

Changes in net sales and operating profit generally are expressed in terms of volume. Changes in volume refer to increases or decreases in sales resulting from varying production activity levels, deliveries, or service levels on individual contracts. Changes in volume also include the effect of fluctuations in contract profit booking rates that have occurred in reporting periods other than those presented in the comparative segment results. Volume changes typically include a corresponding change in segment operating profit based on the current profit booking rate for a particular contract.

Comparability of the Corporation's segment sales, operating profit, and operating margins may be impacted by changes in profit booking rates on the Corporation's contracts accounted for using the percentage-of-completion method of accounting. Increases in the profit booking rates, typically referred to as risk retirements, usually relate to revisions in the estimated total costs that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate resulting in an increase in the estimated total costs to complete and a reduction of the profit booking rate. Increases or decreases in profit booking rates are recognized in the current period and reflect the inception-to-date effect of such changes. Segment operating profit and margins may also be impacted, favorably or unfavorably, by other matters such as the resolution of contractual matters; restructuring charges, except for significant severance actions; cost recoveries on all restructuring charges; reserves for disputes; asset impairments; and insurance recoveries, among others. Segment operating profit and items such as risk retirements, reductions of profit booking rates, or other matters are presented net of state income taxes.

The following table presents summary operating results of the Corporation's five business segments and reconciles these amounts to the Corporation's consolidated financial results.

(in millions)

Quarters Ended

March 30,

2014

March 31,

2013

Net sales

Aeronautics

$

3,386

$

3,186

Information Systems & Global Solutions

1,910

2,106

Missiles and Fire Control

1,867

1,988

Mission Systems and Training

1,628

1,830

Space Systems

1,859

1,960

Total net sales

$

10,650

$

11,070

Operating profit

Aeronautics

$

393

$

379

Information Systems & Global Solutions

174

189

Missiles and Fire Control

358

344

Mission Systems and Training

250

201

Space Systems

254

230

Total business segment operating profit

1,429

1,343

Unallocated, net

FAS/CAS pension income (expense)1

86

(121)

Other, net2

(83)

(103)

Total unallocated, net

3

(224)

Total consolidated operating profit

$

1,432

$

1,119

1 The change in the FAS/CAS pension adjustment from expense to income between the periods was due to lower FAS pension expense in 2014 ($313 million during the first quarter of 2014, compared to $487 million in the same period in 2013) primarily as a result of the increase in the discount rate used in the measurement of the Corporation's GAAP postretirement benefit plan obligations at the end of 2013, and incrementally higher CAS costs in 2014 ($399 million during the first quarter of 2014 compared to $366 million in the same period in 2013) as a result ofphasing in the CAS Harmonization rules as discussed in the Corporation's Annual Report on Form 10-K for the year ended Dec. 31, 2013.

2 Other, net includes severance charges of $30 million during the first quarter of 2013 associated with the elimination of certain positions at the Corporation's IS&GS business segment.

The Corporation's consolidated net adjustments not related to volume, including net profit booking rate adjustments and other matters, represented approximately 37 percent of total segment operating profit in the first quarter of 2014 compared to approximately 35 percent of total segment operating profit in the first quarter of 2013.

Aeronautics

(in millions)

Quarters Ended

March 30,

2014

March 31,

2013

Net sales

$

3,386

$

3,186

Operating profit

$

393

$

379

Operating margins

11.6

%

11.9

%

Aeronautics' net sales for the first quarter of 2014 increased $200 million, or 6 percent, compared to the same period in 2013. The increase was primarily attributable to higher net sales of about $190 million for F-35 production contracts due to increased volume; approximately $170 million for the C-5 program due to increased aircraft deliveries (two aircraft delivered in the first quarter of 2014 compared to no deliveries during the same period in 2013); and about $30 million for the F-16 program due to increased sustainment activities and increased aircraft deliveries (four aircraft delivered in the first quarter of 2014 compared to three delivered during the same period in 2013), partially offset by aircraft configuration mix. The increases were partially offset by lower net sales of approximately $85 million for the C-130 program due to fewer aircraft deliveries (five aircraft delivered in the first quarter of 2014 compared to six delivered during the same period in 2013) and decreased sustainment activities; about $60 million for the F-35 development contract due to lower volume; and approximately $30 million for the F-22 program due to decreased volume and risk retirements.

Aeronautics' operating profit for the first quarter of 2014 increased $14 million, or 4 percent, compared to the same period in 2013. The increase was primarily attributable to higher operating profit of approximately $35 million for the C-130 program due to increased risk retirements, partially offset by fewer aircraft deliveries and decreased sustainment activities; and about $25 million for F-35 production contracts due to higher volume. Operating profit was comparable for the F-35 development contract. The increases were partially offset by lower operating profit of approximately $10 million for the F-16 program due to the resolution of a contractual matter during the first quarter of 2013; about $10 million for the F-22 program due to decreased risk retirements; and approximately $25 million for various other programs due to decreased volume. Operating profit for the C-5 program also was comparable as increased aircraft deliveries were substantially offset by a lower profit booking rate. Adjustments not related to volume, including net profit booking rate adjustments, were approximately $15 million lower for the first quarter of 2014 compared to the same period in 2013.

Information Systems & Global Solutions

(in millions)

Quarters Ended

March 30,

2014

March 31,

2013

Net sales

$

1,910

$

2,106

Operating profit

$

174

$

189

Operating margins

9.1

%

9.0

%

IS&GS' net sales for the first quarter of 2014 decreased $196 million, or 9 percent, compared to the same period in 2013. The decrease was primarily attributable to lower net sales of approximately $220 million due to the wind-down or completion of certain programs (primarily command and control programs); and about $115 million due to a decline in volume for various programs, which reflects lower funding levels and programs impacted by in-theater force reductions (such as the Persistent Threat Detection System program). The decreases were partially offset by higher net sales of about $140 million due to the start-up of new programs and growth in other recently awarded programs (primarily a U.S. Government IT program).

IS&GS' operating profit for the first quarter of 2014 decreased $15 million, or 8 percent, compared to the same period in 2013. The net decrease in the first quarter operating profit was primarily attributable to the activity described above. Adjustments not related to volume, including net profit booking rate adjustments, for the first quarter of 2014 were comparable to the same period in 2013.

Missiles and Fire Control

(in millions)

Quarters Ended

March 30,

2014

March 31,

2013

Net sales

$

1,867

$

1,988

Operating profit

$

358

$

344

Operating margins

19.2

%

17.3

%

MFC's net sales for the first quarter of 2014 decreased $121 million, or 6 percent, compared to the same period in 2013. The decrease was primarily attributable to lower net sales of approximately $125 million for various technical services programs due to lower volume; about $30 million for air and missile defense programs (primarily fewer deliveries of Patriot Advanced Capability-3, partially offset by higher volume for Terminal High-Altitude Area Defense); and approximately $30 million for tactical missiles programs due to fewer deliveries (primarily Hellfire). These decreases were partially offset by higher net sales of about $50 million for fire control programs (primarily Apache, Sniper®, and LANTIRN®) due to increased deliveries.

CIO, CTO & Developer Resources

MFC's operating profit for the first quarter of 2014 increased $14 million, or 4 percent, compared to the same period in 2013. The increase was primarily attributable to higher operating profit of approximately $25 million for tactical missile programs (primarily Hellfire) due to net increased risk retirements. Adjustments not related to volume, including net profit booking rate adjustments, were approximately $15million higherfor the first quarter of 2014 compared to the same period in 2013.

Mission Systems and Training

(in millions)

Quarters Ended

March 30,

2014

March 31,

2013

Net sales

$

1,628

$

1,830

Operating profit

$

250

$

201

Operating margins

15.4

%

11.0

%

MST's net sales for the first quarter of 2014 decreased $202 million, or 11 percent, compared to the same period in 2013. The decrease was primarily attributable to lower net sales of about $115 million for various integrated warfare systems and sensors programs due to lower volume (primarily Aegis and Medium Extended Air Defense System (MEADS)); and approximately $100 million for undersea systems programs due to decreased volume.

MST's operating profit for the first quarter of 2014 increased $49 million, or 24 percent, compared to the same period in 2013. The increase was primarily attributable to higher operating profit of approximately $30 million due to increased risk retirements for radar surveillance systems and combat systems programs; about $30 million for reserves recorded in the first quarter of 2013 that were not repeated in the first quarter of 2014, including reserves for a supply chain management contract (Fleet Automotive Support Initiative) and undersea systems programs (primarily Common Broadband Advanced Sonar System); and about $25 million for various training and logistics services programs due to increased risk retirements. The increases were partially offset by lower operating profit of approximately $35 million for various programs (such as MEADS) due to lower risk retirements and volume. Adjustments not related to volume, including net profit booking rate adjustments, were approximately $40million higher for the first quarter of 2014 compared to the same period in 2013.

Space Systems

(in millions)

Quarters Ended

March 30,

2014

March 31,

2013

Net sales

$

1,859

$

1,960

Operating profit

$

254

$

230

Operating margins

13.7

%

11.7

%

Space Systems' net sales for the first quarter of 2014 decreased $101 million, or 5 percent, compared to the same period in 2013. The decrease was primarily attributable to lower volume of about $55 million for government satellite programs (primarily the Global Positioning System III (GPS-III) program) and approximately $50 million for the Orion program.

Space Systems' operating profit for the first quarter of 2014 increased $24million, or 10 percent, compared to the same period in 2013. The increase was primarily attributable to higher operating profit of approximately $10 million for government satellite programs (primarily the Advanced Extremely High Frequency program due to increased risk retirements, partially offset by the GPS-III program due to lower volume and a lower profit booking rate); and about $15 million for higher equity earnings and other program activities. Adjustments not related to volume, including net profit booking rate adjustments, for the first quarter of 2014 were comparable to the same period in 2013.

Total equity earnings recognized by Space Systems (primarily ULA) represented approximately $70million, or 28 percent, of this business segment's operating profit, in the first quarter of 2014 compared to approximately $65 million, or 28 percent, in the first quarter of 2013.

Income Taxes

The Corporation's effective income tax rates were 30.8 percent for the first quarter of 2014 and 25.8 percent for the first quarter of 2013. The rates for both periods benefited from tax deductions for U.S. manufacturing activities and for dividends paid to the Corporation's defined contribution plans with an employee stock ownership plan feature. Additionally, the Corporation's effective tax rate for the first quarter of 2013 benefited from $46 million ($0.14 per share) in U.S. research and development (R&D) tax credits, which included the full-year 2012 credits and one quarter of the 2013 credits. The American Taxpayer Relief Act, enacted in January 2013, reinstated the R&D tax credit for 2012 and 2013. The R&D tax credit expired on Dec. 31, 2013 and, therefore, the Corporation will not recognize its benefits in 2014 unless and until legislation is enacted.

About Lockheed Martin

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs approximately 113,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation's net sales for 2013 were $45.4 billion.

Conference Call Information

Conference call: Lockheed Martin will webcast the earnings conference call (listen-only mode) at 11:00 a.m. ET on April 22, 2014. A live audio broadcast, including relevant charts, will be available on the Investor Relations page of the Corporation's web site at: www.lockheedmartin.com/investor.

Forward-Looking Statements

This press release contains statements which, to the extent that they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin's current expectations and assumptions. The words "believe," "estimate," "anticipate," "project," "intend," "expect," "plan," "outlook," "scheduled," "forecast," and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:

the availability of funding for the Corporation's products and services both domestically and internationally due to general economic conditions, performance, cost, or other factors;

the Corporation's dependence on U.S. Government contracts;

changes in domestic and international customer priorities and requirements (including declining budgets resulting from general economic conditions; affordability initiatives; the potential for deferral or termination of awards; the implementation of automatic sequestration under the Budget Control Act of 2011 or Congressional actions intended to replace sequestration; U.S. Government operations under a future continuing resolution; or any future shutdown of U.S. Government operations) and the success of the Corporation's strategy to mitigate some of these risks by focusing on expanding into adjacent markets and growing international sales;

the accuracy of the Corporation's estimates and assumptions including those as to schedule, cost, technical, and performance issues under its contracts, cash flow, actual returns (or losses) on pension plan assets, movements in interest rates, and other changes that may affect pension plan assumptions;

charges from any future impairment reviews that may result in the recognition of losses and a reduction in the book value of goodwill or other long-term assets;

the future effect of legislation, rulemaking, and changes in accounting, tax, defense procurement, changes in policy, interpretations, or challenges to the allowability and recovery of costs incurred under government cost accounting standards, export policy, changes in contracting policy and contract mix;

the future impact of acquisitions or divestitures, ventures, teaming arrangements, or internal reorganizations;

compliance with laws and regulations, the outcome of legal proceedings and other contingencies (including lawsuits, government investigations or audits, and the cost of completing environmental remediation efforts), and U.S. Government identification of deficiencies in the Corporation's business systems;

the competitive environment for the Corporation's products and services, export policies, and potential for delays in procurement due to bid protests;

the Corporation's efforts to increase the efficiency of its operations and improve the affordability of its products and services including difficulties associated with: moving or consolidating operations; providing for the orderly transition of management; attracting and retaining key personnel or the transfer of critical knowledge to the extent the Corporation loses key personnel through wage competition, normal attrition (including retirement), and specific actions such as workforce reductions; and supply chain management; and

economic, business, and political conditions domestically and internationally (including potential impacts resulting from tension between the international community and Russia over Ukraine) and the Corporation's increased reliance on securing international and adjacent business.

These are only some of the factors that may affect the forward-looking statements contained in this press release. For a discussion identifying additional important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see the Corporation's filings with the U.S. Securities and Exchange Commission (SEC) including, but not limited to, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the Corporation's Annual Report on Form 10-K for the year ended Dec. 31, 2013. The Corporation's filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov.

The Corporation's actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, the forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this press release speak only as of the date of its filing. Except where required by applicable law, the Corporation expressly disclaims a duty to provide updates to forward-looking statements after the date of this press release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this press release are intended to be subject to the safe harbor protection provided by the federal securities laws.

Lockheed Martin Corporation

Consolidated Statements of Earnings1

(unaudited; in millions, except per share data)

Quarters Ended

March 30,2014

March 31,2013

Net sales

$ 10,650

$ 11,070

Cost of sales

(9,279)

(10,029)

Gross profit

1,371

1,041

Other income, net

61

78

Operating profit

1,432

1,119

Interest expense

(86)

(92)

Other non-operating income (expense), net

2

(2)

Earnings before income taxes

1,348

1,025

Income tax expense

(415)

(264)

Net earnings

$ 933

$ 761

Effective tax rate

30.8

%

25.8

%

Earnings per common share

Basic

$ 2.92

$ 2.37

Diluted

$ 2.87

$ 2.33

Weighted average shares outstanding

Basic

319.1

321.7

Diluted

325.1

326.3

Common shares reported in stockholders' equity at end of period

315

318

1 The Corporation closes its books and records on the last Sunday of the calendar quarter to align its financial closing

with its business processes, which was on March 30 for the first quarter of 2014 and March 31 for the first quarter of

2013. The consolidated financial statements and tables of financial information included herein are labeled based on

that convention. This practice only affects interim periods, as the Corporation's fiscal year ends on Dec. 31.

Lockheed Martin Corporation

Business Segment Summary Operating Results

(unaudited; in millions)

Quarters Ended

March 30,2014

March 31,2013

% Change

Net sales

Aeronautics

$ 3,386

$ 3,186

6

%

Information Systems & Global Solutions

1,910

2,106

(9)

%

Missiles and Fire Control

1,867

1,988

(6)

%

Mission Systems and Training

1,628

1,830

(11)

%

Space Systems

1,859

1,960

(5)

%

Total net sales

$ 10,650

$ 11,070

(4)

%

Operating profit

Aeronautics

$ 393

$ 379

4

%

Information Systems & Global Solutions

174

189

(8)

%

Missiles and Fire Control

358

344

4

%

Mission Systems and Training

250

201

24

%

Space Systems

254

230

10

%

Total business segment operating profit

1,429

1,343

6

%

Unallocated, net

FAS/CAS pension adjustment

FAS pension expense

(313)

(487)

Less: CAS cost

399

366

FAS/CAS pension income (expense)1

86

(121)

Special item - severance charges2

-

(30)

Stock-based compensation

(48)

(53)

Other, net

(35)

(20)

Total unallocated, net

3

(224)

Total consolidated operating profit

$ 1,432

$ 1,119

28

%

Operating margins

Aeronautics

11.6

%

11.9

%

Information Systems & Global Solutions

9.1

%

9.0

%

Missiles and Fire Control

19.2

%

17.3

%

Mission Systems and Training

15.4

%

11.0

%

Space Systems

13.7

%

11.7

%

Total business segment operating margins

13.4

%

12.1

%

Total consolidated operating margins

13.4

%

10.1

%

1 The change in the FAS/CAS pension adjustment from expense to income between the periods was due to lower FAS

pension expense in 2014 primarily as a result of the increase in the discount rate used in the measurement of the

Corporation's GAAP postretirement benefit plan obligations at the end of 2013, and incrementally higher CAS costs in

2014 as a result of phasing in the CAS Harmonization rules as discussed in the Corporation's Annual Report on Form

10-K for the year ended Dec. 31, 2013.

2 Severance charges during the first quarter of 2013 consisted of amounts, net of state tax benefits, associated with the

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Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...

"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.

What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...

Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation.
In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...

As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...

You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time.
In his session at 19th Cloud Expo, Mark Allen, General Manager of...

Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities.
Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.

The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location.
With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...

Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...

As we enter the final week before the 19th International Cloud Expo | @ThingsExpo in Santa Clara, CA, it's time for me to reflect on six big topics that will be important during the show. Hybrid Cloud: This general-purpose term seems to provide a comfort zone for many enterprise IT managers. It sounds reassuring to be able to work with one of the major public-cloud providers like AWS or Microsoft Azure while still maintaining an on-site presence.

When was the last time you’ve ever heard anyone say “IT Applications & Operations”? Frankly, in my 30+ year career in IT, I don’t believe I’ve ever heard anyone use this term. The typical term we hear is IT Infrastructure & Operations. These two go together like Peanut Butter and Jelly, which tells us a lot about how we view the field of IT. For those that may not be familiar with the role of IT Operations, Joe Hertvik does a great job here of describing IT Operations Management as someone enga...

Multiple agencies across the U.S. government are paying closer attention to the software they are buying. More specifically, they want to know what open source and third party components were used to build the software applications. The report notes:
U.S. Food and Drug Administration (FDA) wants to know what open source components are being used in medical devices.

I’m a huge fan of open source DevOps tools. I’m also a huge fan of scaling open source tools for the enterprise. But having talked with my fair share of companies over the years, one important thing I’ve learned is that you can’t scale your release process using open source tools alone. They simply require too much scripting and maintenance when used that way. Scripting may be fine for smaller organizations, but it’s not ok in an enterprise environment that includes many independent teams and to...

In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential.
Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...

For large enterprise organizations, it can be next-to-impossible to identify attacks and act to mitigate them in good time. That’s one of the reasons executives often discover security breaches when an external researcher — or worse, a journalist — gets in touch to ask why hundreds of millions of logins for their company’s services are freely available on hacker forums.
The huge volume of incoming connections, the heterogeneity of services, and the desire to avoid false positives leave enterpri...

Monitoring of Docker environments is challenging. Why? Because each container typically runs a single process, has its own environment, utilizes virtual networks, or has various methods of managing storage. Traditional monitoring solutions take metrics from each server and applications they run. These servers and applications running on them are typically very static, with very long uptimes. Docker deployments are different: a set of containers may run many applications, all sharing the resource...

Logs are continuous digital records of events generated by all components of your software stack – and they’re everywhere – your networks, servers, applications, containers and cloud infrastructure just to name a few. The data logs provide are like an X-ray for your IT infrastructure. Without logs, this lack of visibility creates operational challenges for managing modern applications that drive today’s digital businesses.

@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.

The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location.
With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...

Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair
The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY.
"DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great t...

This is a guest post from Cloudinary, a cloud-based image and video management solution. We are always looking for ways to help companies deliver digital experiences that will meet customers expectations in terms of content and performance. Tackling these 5 challenges is a good step towards delivering a top-notch digital experience.
We are in the midst of a great evolution when it comes to website design. Formerly text-heavy sites now rely on eye-catching images and video to draw in visitors,...

There’s a funny thing about digital transformation: we are simultaneously over-hyping it and understating it. On the one hand, every tech company in the world is talking about it. It doesn’t matter how mundane the technology; every company is somehow relating their products to digital transformation.
On the other, many people are failing to grasp the import and impact of what digital transformation really means. In far too many cases, business and IT leaders are dismissing it as nothing more ...

Today’s IT environments are increasingly heterogeneous, with Linux, Java, Oracle and MySQL considered nearly as common as traditional Windows environments. In many cases, these platforms have been integrated into an organization’s Windows-based IT department by way of an acquisition of a company that leverages one of those platforms. In other cases, the applications may have been part of the IT department for years, but managed by a separate department or singular administrator.
Still, whether...

The holiday shopping season, a time when Americans flock to the malls or online to find those must-have gifts, is about to kick off. Kids are pouring over catalogs and compiling their wish lists, adults are looking at the Black Friday ads to find the best bargain, and retailers are hoping they don’t make the news for failure to meet customers’ expectations. Every year, retailers go into Black Friday thinking they have done everything they can and are prepared for the onslaught of visitors, but s...

SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...

Hewlett Packard Enterprise advanced across several fronts at HPE Discover 2016 in London, making inroads into hybrid IT, Internet of Things, and on to the latest advances in memory-based computer architecture.
A leaner, more streamlined Hewlett Packard Enterprise (HPE) advanced across several fronts at HPE Discover 2016 in London, making inroads into hybrid IT, Internet of Things (IoT), and on to the latest advances in memory-based computer architecture. All the innovations are designed to hel...

@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...

I was walking down the street in Toronto one morning juggling a large tray of Tim Horton's coffee. Standing at a busy corner, waiting for the walk signal, I overheard the following conversation:
Woman: "I can't believe they delivered the new application with all those options. No one said they'd be live."
Man: "I know. I made the changes last week, and for some reason, they went into QA but weren't tested. So I assumed that we weren't rolling them out."

If you haven’t heard yet, CollabNet just put out some very big news for managing and gaining value from DevOps.
We introduced CollabNet DevOps Lifecycle Manager (DLM) — a platform designed exclusively for providing a single pane of glass, dashboard, and traceability views across your DevOps toolchain and processes from planning to operations and that can be traced back to planning and development.

We have been seeing a sudden rise in the deployment of Artificial Intelligence (AI), Machine Learning (ML), and Deep Learning (DL). It looks like the long “AI winter” is finally over. It is interesting to note that AI was mentioned by Alan Turing in a paper he wrote back in 1950 to suggest that there is possibility to build machines with true intelligence. Then in 1956, John McCarthy organized a conference at Dartmounth and coined the phrase Artificial Intelligence. Much of the next three decade...

How can a dinosaur adapt to the modern world? Well, if your ‘dinosaur’ happens to be a mainframe environment, then we suggest you take a good long at DevOps. The next generation of application delivery and agile methodologies are illuminating the challenges and solutions mainframe engineers face on a daily basis. As Continuous Delivery and DevOps evolve, so too should your mainframe and its processes.

Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...

Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his session at @DevOpsSummit 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, showed how customers are able to achieve a level of transparency that enables everyone fro...

The volume of transactions running through websites and mobile apps make customer-facing applications crucial to online businesses. If these applications perform well for their users, they generate revenue for the business. If they don't, they affect the credibility of the business, which in turn affects the overall revenue. It is therefore imperative that businesses understand how well their revenue-critical applications are behaving for their end users.
From an IT team's point of view, unde...

There are many companies offering network monitoring solutions to small, medium and big companies. The question is: is installing a monitoring software in our IT infrastructure really economically viable? Here we will touch some key points, which are directly affected by network monitoring software.

Businesses have always had to transform to find better and more efficient ways to deliver value faster to their users, customers or consumers. The motivating factors are shorter lead times, automated and streamlined value flow, as well as reduction of overall costs and bound capital, requiring enterprises to transition to a continuous innovation and optimization model. Prominent examples […]

Jumping on the Agile bandwagon might help, but only if done right. What makes a good Agile project and what makes a bad one?
The move to Agile in the last decade has resulted in projects that finish faster, produce better software, and come in under budget. Look up any new, hot tech company and you'll find articles lauding their Agile philosophy. You might think that success is guaranteed if you get your team to commit the Agile Manifesto to memory.
The problem with looking at this in a single...

Home-maintenance repair and services provider ServiceMaster develops applications with a security-minded focus as a DevOps benefit.
To learn how security technology leads to posture maturity and DevOps business benefits, we're joined by Jennifer Cole, Chief Information Security Officer and Vice President of IT, Information Security, and Governance for ServiceMaster in Memphis, Tennessee, and Ashish Kuthiala, Senior Director of Marketing and Strategy at Hewlett Packard Enterprise DevOps. The dis...

What is inner source? I spoke about it during my webinar on Tuesday, Nov. 8, but here's a review.
At its most fundamental level, inner source is about replicating successful work practices of the open-source world to commercial software projects.
There are numerous examples of open source software making big splashes in the commercial space - Linux, Firefox, Apache - and inner source takes many of the lessons learned from these massively successful projects and shows you how you can apply some...

Cloud computing budgets worldwide are reaching into the hundreds of billions of dollars, and no organization can survive long without some sort of cloud migration strategy. Each month brings new announcements, use cases, and success stories.